Rivian Automotive shares soared 37% after Volkswagen said it would invest an initial $1 billion in the electric-car maker, with an additional $4 billion subject to the terms of the deal. The two companies said they were creating the joint venture to “create next-generation electric architecture and best-in-class software technology.” Rivian CEO RJ Scaringe said the partnership would help “secure the capital we need for significant growth.”
Rivian’s smaller rival, Lucid Group, rose 5.6% in premarket trading. Auto parts supplier Aptiv
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Meanwhile, the stock price fell 6.4% after analysts at Piper Sandler downgraded it to underweight from neutral following reports of a Rivian-Volkswagen deal.
FedEx Corp. rose 13% in premarket trading after the shipping and logistics company reported fourth-quarter profit that beat analysts’ expectations and forecast low- to mid-single-digit revenue growth for fiscal 2025. The company now sees adjusted earnings per share of $20 to $22. Analysts were expecting $20.92. The company also said it is reviewing the operations of its cargo-shipping business.
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Nvidia shares rose 2.2% in premarket trading after the company rose 6.8% on Tuesday, adding $196 billion to its market capitalization, helping to boost the company’s stock.
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Its market capitalization has surpassed $3 trillion again. The chipmaker’s shares have fallen 13% over the past three trading sessions and are in a correction.
Southwest Airlines fell 2.9% after the company said it expects its operating revenue per available seat mile to decline 4% to 4.5% in the second quarter, lower than its previous outlook which projected a decline of 1.5% to 3.5%. “We are lowering our outlook for operating revenue per available seat mile primarily due to the complexities of adapting our revenue management to current booking patterns in this dynamic environment,” Southwest said in a filing. Despite the lowered outlook, Southwest said it still expects its operating revenue for the period to reach a record high on a quarterly basis.
Chipotle Mexican Grill Inc. shares fell 0.6% to $65.29 in premarket trading after the company announced a 1-for-50 stock split that went into effect after the close of trading on Tuesday. It marks the company’s first stock split since its shares were listed on the New York Stock Exchange nearly two decades ago.
Worthington Enterprises Inc. shares fell 7.5% after the industrial goods maker reported a 14% drop in fourth-quarter revenue. Sales at its consumer products business fell 16%.
Micron Technology Inc. rose 3% ahead of its third-quarter earnings report, scheduled for after the close of trading on Wednesday. Wall Street expects the company to post adjusted earnings of 48 cents a share on revenue of $6.67 billion, a result likely to reflect improving demand for PCs and smartphones and a surge in artificial intelligence-related demand.
General Mills shares fell 4 percent after the company reported fourth-quarter adjusted profit that beat analysts’ estimates but sales that fell short of expectations.
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Contact Joe Woelfel at joseph.woelfel@barrons.com.
